EVGO - The 3 Best EV Charging Stocks to Buy in June 2024

2024-06-11 06:00:00 ET

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

With electric vehicle sales accelerating again, we’re in desperate need of charging stations — which should fuel massive growth for some of the best EV charging stocks.

For one, according to Inside Climate News :

“Talk of an implosion of the U.S. electric vehicle market is verging on ridiculous. While there are some serious challenges surrounding EVs — such as the need to build out the nation’s charging infrastructure — automakers are on track to continue on a path of substantial growth.”

Secondly, just days ago, Fox Business reported that the Biden administration’s efforts to install electric vehicle charging stations that received billions in funding from Congress have yielded just seven functioning chargers, which Sen. Jeff Merkley, D-Ore., called “pathetic progress.”

As I’ve said before, if the U.S. is serious about having millions of EVs on the roads, we must have many more EV charging stations. Once set up, it will have a substantial impact on some of the best EV charging stocks, like these:

EVgo (EVGO)

Since bottoming out at around $1.65, EVgo (NASDAQ: EVGO ) hit a high of $2.50 and pulled back. Now trading at around $2.11, it’s still cheap with plenty of upside potential. That is, once the government gets far more aggressive with EV charging stations.

While we wait for that to happen, analysts at RBC Capital say EVGO is well-positioned to benefit, as the auto industry moves towards electrification.

Plus, earnings haven’t been too shabby. In its first quarter, its earnings per share loss of nine cents beat estimates by two cents. Revenue of $55.2 million — up 118.2% year over year — beat by $1.85 million. EVGO also added about 109,000 new customer accounts.

According to the company, its business continues to grow and achieve record results, demonstrating the strength of its business model of owning and operating a fast-charging network. The tailwind of long-term EV adoption gives the company confidence that it will achieve adjusted EBITDA breakeven in 2025.

Blink Charging (BLNK)

After finding strong support at around $2.20, Blink Charging (NASDAQ: BLNK ) raced to a high of $3.52 and pulled back slightly. Now consolidating around $3.24, BLNK also has plenty of upside potential. Again, that’s highly dependent on what the U.S. does next with EV charging stations.

In addition, the company just became one of the official EV charging providers for New York . That will allow Blink Charging to now electrify state and municipal fleets, in addition to providing electrification for employees, residents and visitors. Plus, analysts at D.A. Davidson recently reiterated a hold on the BLNK stock with a $5 price target.

Earnings have also been solid. In its recent quarter, it posted an EPS loss of 13 cents, which beat expectations by seven cents. Revenue was $37.57 million, up 73.1% year-over-year and beat expectations by $2.96 million. It also reiterated its target of achieving positive adjusted EBITDA by December.

ChargePoint (CHPT)

There’s also ChargePoint (NYSE: CHPT ).

Consolidating at around $1.80, this is another one of the best EV charging stocks to buy and hold long-term. Once the EV charging station issues are resolved around the states, CHPT could easily race to at least $10 a share initially.

Earnings have been good. In its first quarter, it posted an EPS loss of 17 cents, which beat expectations by two cents. Revenue was $107.04 million, down 17.7% year-over-year, did beat expectations by $1.4 million. Q1 subscription revenue of $33 million was 27% year-over-year growth.

Unfortunately, for the second fiscal quarter, ChargePoint said it expects revenue of $108 million to $118 million, which is below expectations of $122.74 million .

The stock was also defended by Needham , which has a “buy” rating and a price target of $3 on CHPT. The firm noted that it’s enthusiastic about second-half gross margin accretion and OPEX leverage, or operating expense leverage, and is now less concerned about the company’s future.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .

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